Robinhood Q1 Earnings Miss Wall Street Estimate, HOOD Stock Plunges 6%

Robinhood Markets Inc. (NASDAQ:HOOD) stock plummeted following the company’s first-quarter 2026 earnings report, which fell short of Wall Street expectations. The HOOD stock fell around 6% in after-market trading, which indicates a negative reaction to the report.

Robinhood Fails To Meet Wall Street Estimates

The firm’s revenue was $1.07 billion, a 15% increase from the previous year. However, this was less than the expectations of $1.14 billion. Diluted earnings per share (EPS) were $0.38, also slightly below expectations of $0.40.

Net income grew to $346 million, up slightly from a year ago. Nonetheless, the company delivered growth on several fronts. Interest income was up to $359 million and transaction revenue up to $623 million.

In the Q1 earnings report, CEO Vlad Tenev said, “Driven by our relentless product velocity and innovation, Robinhood is increasingly positioned at the center of our customers’ financial lives, just as we enter the early innings of the Great Wealth Transfer.”

Positive user trends also continued. The number of funded customers grew to 27.4 million and total assets to $307 billion. Still, struggles in some areas offset the growth. Revenue from crypto trading was down, offsetting strength in equities and options.

Meanwhile, ahead of the earnings, Ripple CTO Emeritus David Schwartz flashed a phishing scam attacking Robinhood users. These negative developments could have indeed impacted the HOOD stock performance.

HOOD Stock Tumbles In After Hours

The earnings miss comes on the back of higher expectations. The estimates for revenue growth and a slightly stronger earnings figure made the miss more meaningful to the market.

The decline in HOOD stock comes on the quarterly report. The Robinhood stock closed at $82.07, a loss of $1.88 (down by 2.24%) on Tuesday, April 28. Further, in the after hours, after the earnings miss, the HOOD stock was down to $76.93, dropping by 6.27%.

On the contrary, previously, the HOOD share price gained after a $75 million deal with OpenAI.